When an Invoice Lists the Terms as 3/15 Net 45

question 65

True/False

When an invoice lists the terms as 3/15 net 45, the "net 45" means that the seller requires payment in full within 45 days.

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Definitions:

Materials Requisition

A document used to request the transfer of materials from storage to production, specifying types and quantities of materials required.

Purchase Order

A document issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services.

Receiving Report

A document that records the details of items received in a shipment, used to verify deliveries and manage inventory.

Factory Overhead

All indirect costs related to manufacturing, excluding direct materials and direct labor.